Hedera Group (HEGR) Q3 2024 earnings summary

Executive summary

• Revenue declined 26% year-over-year in Q3 2024 to 130.9 MSEK, mainly due to a 65% volume drop in the Bemanning segment.

• Cost reductions improved profitability sequentially from Q2, with Q3 operating income at 3.1 MSEK.

• The Assistans segment maintained strong gross margins and grew 6.8% over nine months, while Bemanning faced continued market headwinds.

• EBITDA for Q3 was 4.3 MSEK, and net income was 2.3 MSEK, both down year-over-year.

Financial highlights

• Q3 2024 revenue: 130.9 MSEK (down 26% year-over-year); nine months: 414.1 MSEK (down 19%).

• Q3 operating income: 3.1 MSEK (vs. 8.4 MSEK prior year); net income: 2.3 MSEK (vs. 7.5 MSEK).

• Q3 EBITDA: 4.3 MSEK (vs. 9.7 MSEK); nine months EBITDA: 6.1 MSEK (vs. 18.4 MSEK).

• Rolling 12-month pro forma revenue: 580.7 MSEK (down 15%); EBITDA: 8.6 MSEK (vs. 25.8 MSEK).

• Earnings per share Q3: SEK 0.15 (vs. 0.50); nine months: SEK -0.04 (vs. 0.89).

Outlook and guidance

• Market for healthcare staffing remains challenging due to regional restrictions on hiring external staff.

• Cost control measures in Bemanning are expected to support future profitability.

• Growth initiatives in Assistans and entry into Life Science staffing planned for early 2025.

• Increase in bookings for continuity consultants anticipated in Q4 2024 and Q1 2025.